The mechanism of price reduction, as one of the most significant innovations of the 2016 reform of the French Civil Code, has gained a prominent position within the legal framework governing the performance of contractual obligations. Article 1223, inspired by European legal instruments such as the Principles of a fundamental role in redefining the concept of contractual balance, and its interaction with other remedies—such as specific performance, termination, and damages—has introduced notable developments in both judicial and contractual approaches. This study provides a comprehensive analysis of the price reduction mechanism by examining the theoretical foundations, legal structure of Article 1223, its practical functions, judicial practice, and the doctrinal debates surrounding it. Furthermore, through a comparative examination with Iranian law and concepts such as compensation for defect (arsh), non-conformity with stipulated qualities, and partial invalidity of the contract (tab‘oz-e safqeh), the study demonstrates how Iranian juridical and contractual concepts may be interpreted and strengthened in light of modern principles of French contract law. The findings of this comparative research highlight the opportunities, limitations, and practical requirements of the price reduction mechanism in both legal systems, while offering a strategic perspective for strengthening contractual justice and economic balance in contractual relations.